The protesters disrupted traffic and blocked streets in the capital.
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Police dispersed the rally and arrested seven people, prompting some 150 people to arrive at the Jerusalem police station and protest against the arrests.
Six of the people who were arrested were later released and the seventh was detained for further questioning, under suspicion of causing damage to a police car.
Michal Shoukroun, an environmental activist, told Ynet that the protest came about "due to the government's complete disregard to and crushing of the underprivileged in Israel."
"As long as we don't know for certain how much gas the country has, we demand that a trillion shekel decision, twice the country's budget, will be made in the Knesset and not as a marginal rule in a cabinet meeting," she added.
According to the Jerusalem police, 200 protesters, some of whom masked, blocked a city railway road, and refused to disperse despite police demands. Police then utilized crowd dispersal measures and arrested four protesters.
Police added that the protest was unauthorized and the route of the march was not coordinated with security forces.
Noam (Dabul) Dvir contributed to this report
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